Change of offices in housing appeals to institutional investors

Change of offices in housing appeals to institutional investors

The Kovid-19 epidemic is accelerating the transformation of the office real estate sector in favor of the residential sector. Thus, Novaxia, a real estate developer specializing in these conversions, was to announce a partnership with four life insurers (Genali, AG2R La Mondial, Surveenir and Spirica) on Tuesday 19 January in the presence of several ministers. One billion euros in three years to build 4,000 housing units. “This is the first project of this scale to raise personal savings, and we’ve never had so many cases of progress”, Its founder chairman Joachim Azan says.

Novaxia’s initiative is in addition to Action Logment and its dedicated real estate company, which closed its first call for expression of interest for such an operation in late February 2020, and is currently working on about fifteen projects Has been .

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It is reconsidered as a solution to suit the expectations of actors required to make social and responsible investments: “We have 50% less greenhouse gas emissions than new buildings” Assured Mr. Azan. But the main attraction is to reduce the rate of land artificialization, according to the objectives set by the Citizens’ Conference on Climate.

Housing, Development and Digital Development Law (ELAN Act of 23 November 2013 23) certainly encourages change in offices with a buildability bonus of 30%, but is this enough? Housing Minister Emmanuel Wargan plans to strengthen this bonus through the next climate law: “We should allow elected officials to accept these provisions in their local urban plans and prioritize occupied housing rather than vacant offices”, She begs. “Of course, restructuring is difficult, just as electric vehicles are hard to manufacture, but we’re getting there”, se convainc Joachim Azan.

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Regeneration towards residential real estate

Even though the conversion to housing is more expensive than the construction of new buildings, Novaxia hopes to achieve profitability for the fall in prices of office buildings, associated with the emergence of telecommunications. A trend accelerated by the Kovid-19 epidemic. As such, the year 2020 saw an unprecedented drop in “placed” demand, which according to Immostat, is to say the number of square meters of leased offices (- 44% – in Ile-de-France).

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